Trouble doubled for UK's Tories

Friday, November 21, 2014 - 02:18

UKIP's win of a second parliamentary seat deals another blow to David Cameron's Conservatives - and, as the UK capitulates to Brussels over a bankers' bonus cap, could add to voter euroscepticism and investor risk ahead of next May's UK election. Ciara Lee reports.

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Yet another embarrassing defeat for Britain's ruling Conservative party.
UK Independence Party's Mark Reckless is sworn into parliament after winning the second parliamentary seat Prime Minister David Cameron has lost to the anti-EU party.
(SOUNDBITE) English) BRITISH PRIME MINISTER, DAVID CAMERON, SAYING:
"I'm absolutely determined to win this seat back at the next general election because anything other than a Conservative government will put our recovery at risk and mean Ed Miliband in Downing Street and I'm more determined than ever to make sure that we deliver security for Britain."
It's a second blow for Cameron this week, after his party was forced to withdraw a challenge to EU legislation on a cap to bankers' bonuses, admitting they were unlikely to succeed.
The cap will restrict bonuses to 100 percent of a banker's pay or 200 percent with shareholder approval.
The UK had argued the move could drive talent out of Europe and inflate basic pay, making it harder for banks to cut costs when needed.
UKIP favours an immediate British EU exit and sharply lower immigration.
The latest success for the party and its leader, Nigel Farage, will likely unsettle businesses, investors and European partners who fear Britain could be slipping towards an exit.
Andrea Williams is a UK fund manager.
(SOUNDBITE) (English) FUND MANAGER AT ROYAL LONDON ASSET MANAGEMENT, ANDREA WILLIAMS, SAYING:
"We'll start scrutinising every poll, looking at every by-elections that come in. It was a targeted seat for them, they won it. So it has to be a concern. Definitely."
A year ago many predicted UKIP would never never even get a seat in Westminster.
Now they have two.
With distrust of mainstream parties and anxiety about immigration rising, May's general election is shaping up to be a closely-fought vote.
TJM's Manoj Ladwa.
(SOUNDBITE) (English) HEAD OF TRADING AT TJM PARTNERSHIP, MANOJ LADWA, SAYING:
"The fact that UKIP seems to be gaining more support just goes to show how far away the established political parties are from current feelings in the UK".
That distance was highlighted by a mis-judged Tweet from a Labour front bench MP.
Posting the picture of a house of a voter adorned with English flags, Emily Thornberry was accused of holding working class voters in contempt.
She's reportedly now resigned as the opposition spokesperson for judicial affairs.

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